DEVGIRI KALYAN ASHRAM,JALGAON V. COMMISSIONER OF INCOME TAX (EXEMPTIONS), PUNE

ITA 1/PUN/2025

AI Insights

The case involves Devgiri Kalyan Ashram, which appealed against the decision of the CIT, Exemption, Pune, rejecting their application for registration under section 80G(5) of the IT Act. The initial rejection was based on the non-fulfillment of certain conditions and discrepancies noted during the verification process. The Tribunal noted that a related issue concerning the rejection of the application for registration under section 12AB of the IT Act had been set aside by a coordinate bench, and thus, the matter was remanded back to the CIT for a fresh decision in light of the new developments.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772180 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Other Referred Cases: ITA No.2801/PUN/2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMOL KHAIRNAR
• Assessee Lawyers: AVINASH GUNDIYAL VIRTUAL
• Keywords: Opportunity of being heard; Reasonable cause
• Section: 2; 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.1/PUN/2025 Devgiri Kalyan Ashram, Godai Balirampeth, Station Road, Jalgaon- 425001. PAN : AADTD8830A Vs. CIT, Exemption, Pune. Appellant Respondent आदेश / ORDER PER VINAY BHAMORE, JM: This appeal filed by the assessee is directed against the order dated 26.10.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 80G(5) of the IT Act. 2. Facts of the case, in brief, are, that the assessee filed application for registration in Form No.10AB under clause (iii) of first proviso to sub-section (5) of section 80G of the IT Act on 18.05.2024. With a view to verify the genuineness of activities of the assessee and fulfillment of conditions laid down in clauses (i) Assessee by : Shri Avinash Gundiyal (Virtual) Revenue by : Shri Amol Khairnar Date of hearing : 28.08.2025 Date of pronouncement : 29.08.2025 Printed from counselvise.com ITA No.1/PUN/2025 2 to (v) of section 80G(5) of the IT Act, a notice was issued by Ld. CIT, Exemption, Pune through ITBA portal on 24.06.2024 requesting the assessee to upload certain other information/clarification as mentioned in the notice on or before 08.07.2024. 3. The assessee in response to above notice furnished desired details. After verifying these details, Ld. CIT, Exemption, Pune found certain discrepancies and asked for their clarification by issuing notice dated 15.10.2024. The date of compliance of the said notice was on or before 22.10.2024. The notice was duly served on the assessee, however the assessee neither submitted explanation to the above show-cause notice nor availed the opportunity of being heard. Therefore, Ld. CIT, Exemption, Pune was unable to draw any satisfactory conclusion about the genuineness of activities of the assessee and fulfillment of conditions laid down as clause (i) to (v) of section 80G(5) of the IT Act. Ld. CIT, Exemption, Pune also observed in his order that the application of the assessee for registration u/s 12AB of the IT Act has already been rejected vide order dated 25.10.2024. Therefore, Ld. CIT, Exemption, Pune rejected the application for approval u/s 80G(5) of the IT Act and also cancelled the provisional approval Printed from counselvise.com ITA No.1/PUN/2025 3 granted on 20.02.2022 under clause (iv) of first proviso to section 80G(5) of the IT Act. 4. It is this order against which the assessee is in appeal before this Tribunal. 5. Ld. AR appearing from side of the assessee submitted before us that the application for approval u/s 80G(5) of the IT Act was rejected merely on the ground of rejection of application for registration u/s 12AB of the IT Act. In this regard, Ld. AR submitted before us that it is true that the application for section 12AB registration was rejected by Ld. CIT, Exemption, Pune but a coordinate bench of this Tribunal vide ITA No.2801/PUN/2024 order dated 30.04.2025 has already set-aside the order passed by Ld. CIT, Exemption, Pune & remanded the matter back to the file of Ld. CIT, Exemption, Pune to decide the same afresh as per fact & Law. Accordingly, Ld. AR prayed before the Bench to set-aside the impugned order passed by Ld. CIT, Exemption, Pune u/s 80G(5) of the IT Act and further requested to remand the matter back to the file of Ld. CIT, Exemption, Pune to decide the application for approval u/s 80G(5) of the IT Act afresh, upon disposal of the application for registration u/s 12AB of the IT Act. Printed from counselvise.com ITA No.1/PUN/2025 4 6. Ld. DR appearing from side of the Revenue relied on the order passed by Ld. CIT, Exemption, Pune and requested to confirm the same. 7. We have heard Ld. Counsels from both the sides and perused the material available on record. We find that Ld. CIT, Exemption, Pune rejected the application for approval u/s 80G(5) of the IT Act in the light of the fact that the application for registration filed u/s 12AB of the IT Act has already been rejected. In this regard, we find that a coordinate bench of this Tribunal in ITA No.2801/PUN/2024 vide order dated 30.04.2025 has already set-aside the order passed by Ld. CIT, Exemption and remanded the issue of registration u/s 12AB of the IT Act to the file of Ld. CIT, Exemption, Pune to decide the issue afresh by observing as under :- “7. We have heard the Ld. Representative of the parties, perused the material on record. We observe that the assessee in response to the first notice issued by the Ld. CIT(E) filed the requisite details. After verification of assessee’s response, the Ld. CIT(E) issued another notice pointing out certain discrepancies. The assessee however failed to file compliance and sought adjournment which was rejected by the Ld. CIT(E). In the absence of requisite details/documents/clarification filed by the assessee, the Ld. CIT(E) could not draw any satisfactory conclusion about the genuineness of the activities of the assessee trust and proceeded to pass the impugned order. Before us, the Ld. Counsel for the assessee has submitted that the assessee can file all the requisite details/documentary evidence before the Ld. CIT(E), given an opportunity. Considering the totality of the facts and in the circumstances of the case, we deem it fit and Printed from counselvise.com ITA No.1/PUN/2025 5 proper in the interest of justice to restore thematter to the file of the Ld. CIT(E) with a direction to grant one more opportunity to the assessee to substantiate its case by filing requisite details/documents and decide the issue afresh as per fact and law after giving due opportunity of being heard to the assessee. The assessee is also hereby directed to make its submissions before the Ld. CIT(E) on the appointed date without seeking any adjournment under any pretext unless required for a reasonable cause, failing which the Ld. CIT(E) shall be at liberty to pass appropriate order as per law. We hold and direct accordingly. The ground raised by the assessee is accordingly allowed for statistical purposes. 8. In the result, the appeal of assessee is treated as allowed for statistical purposes.” 8. In the light of above decision of the Tribunal (supra) passed in the case of assessee itself wherein the issue of registration u/s 12AB of the IT Act has been remanded back to the file of Ld. CIT, Exemption, Pune with a direction to decide the issue a fresh and as per fact & Law, we deem it appropriate to set-aside the impugned order passed by Ld. CIT, Exemption, Pune and remand the matter back to the file of Ld. CIT, Exemption, Pune to decide the issue of approval u/s 80G(5) of the IT Act afresh upon the disposal of application for registration u/s 12AB of the IT Act. The assessee is also hereby directed to comply with the notices issued by Ld. CIT, Exemption, Pune in this regard and produce requisite information/documents in support of approval u/s 80G(5) of the IT Act without taking any adjournment under any pretext, otherwise Ld. CIT, Exemption, Pune shall be at liberty to pass appropriate Printed from counselvise.com ITA No.1/PUN/2025 6 order as per law. Thus, the grounds of appeal raised by the assessee in this appeal are partly allowed. 9. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on this 29th day of August, 2025. Sd/- Sd/- (R. K. PANDA) (VINAY BHAMORE) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 29th August, 2025. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT, Exemption, Pune. 4. The Pr. CIT/CIT concerned. 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “A” बᱶच, पुणे / DR, ITAT, “A” Bench, Pune. 6. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. Printed from counselvise.com "